Answer:
2.34
Explanation:
the economy was initially struggling with a 2.34 annual rate of increase in the price level.
Answer:
$207.06 million
Explanation:
First and foremost, it should be borne in mind that the price of a zero-coupon bond is the present value of its face value since the bond does not pay any coupons over its tenor as shown thus:
PV of bonds=FV/(1+i)^n
PV of bonds=amount required=$111 million
FV=face value=the unknown
i=semiannual yield = 4.2%/2=2.1%
n=number of semiannual periods in 15 years=15*2=30
$111=FV/(1+2.1%)^30
FV=$111*(1+2.1%)^30
FV=$207.06 million
The incidence of a tax is the final burden of a tax.
Explanation:
Taxation has an impact and incidence to a citizen.
To <em><u>differentiate between a direct and indirect tax</u></em>, the incidence is taken into consideration.
A direct tax has an impact and is incidental to one person who the tax payer(usually an employee).
An indirect tax has an impact on a tax payer but its incidence may or may not be transferred to the tax payer. Which means the tax payer may transfer the incidence of the tax to another person(usually the final consumer).
